last night I looked at XIV, which is just about the same today as yesterday. Tonight I take a look at the $VIX.
With the shorter term MA’s, the 9 and the 20, pointing down, I see no reason to get excited about the $VIX. Still, the $VIX doesn’t seem to want to drop down into the 20’s and remains at elevated levels. $VIX has bounced off the 50MA once and if it has the strength to find support there again, then it could work its way on out to the apex of the falling wedge pattern in 7-10 days.
For the record, I am not long the $VIX or short the market so I would like to see the $VIX fall out of this wedge pattern and head on down, but because the $VIX just doesn’t seem to want to give up the ghost and head south, then a top side break out of this falling wedge pattern is certainly a possibility. Longs need to pay attention to the $VIX over the next few days and monitor its movements in relation to the 50MA, IMHO, of course.
Chart courtesy of StockCharts.com